Foreign gains under remittance basis

What happens when gain accrues in one year and is remitted in a later year

When will be the gain chargeable to UK tax?

A chargeable (i.e. taxable) gain is treated as accruing in any tax year in which any of the foreign chargeable gains are remitted to the United Kingdom (TCGA92 Sch1 1(2)).1

Will annual exemption limit available on capital gains remitted in a later year?

The annual exempt amount may not be deducted from chargeable gains to which paragraph 2 of Schedule 1 applies (foreign gains of non-UK domiciled individuals accruing in one year and remitted in later year). 2

Can I go back and change the tax return from arising basis to remittance basis and vice versa?

If a remittance basis claim is made within a return a request to revoke the claim can be made no later than 12 months from the statutory filing date i.e. within the amendment window.3

Alternatively, if you need to make a remittance basis claim it can be done within 4 years.4

You can read about foreign losses under remittance basis on this blog.

Source:

  1. CG25313
  2. TCGA92, Sec 1K (3)
  3. RDRM32020
  4. RDRM32030